Segmented Information

12 Months Ended

Dec. 31, 2023

The Company’s exploration and production activities are conducted in three geographic segments: North America, North Sea and Offshore Africa. These activities include the exploration, development, production and marketing of crude oil, natural gas liquids and natural gas. The Company’s Oil Sands Mining and Upgrading activities are reported in a separate segment from exploration and production activities. Midstream and Refining activities include the Company’s pipeline operations, an electricity co-generation system and NWRP.

Segmented revenue and segmented results include transactions between business segments. Sales between segments are made at prices that approximate market prices, taking into account the volumes involved. These transactions and any unrealized profits and losses are eliminated on consolidation, unless unrealized losses provide evidence of an impairment of the asset transferred. Sales to external customers are based on the location of the seller. Inter-segment elimination and Other includes internal and corporate transportation and electricity charges. Production, processing and other purchasing and selling activities, that are not included in the preceding segments are also reported in the segmented information as Inter-segment eliminations and Other.

Operating segments have been determined based on the nature of the Company’s activities and the geographic locations in which the Company operates, and are consistent with the level of information regularly provided to and reviewed by the Company’s chief operating decision makers.


	North America						North Sea						Offshore Africa
(millions of Canadian dollars)	2023		2022		2021		2023		2022		2021		2023		2022		2021
Segmented product sales
Crude oil and NGLs (1)	$	17,375	$	20,755	$	14,478	$	435	$	623	$	607	$	577	$	694	$	420
Natural gas	2,375		4,931		2,484		7		13		5		51		55		31
Other income and revenue (2)	10		217		119		—		—		(1)		9		8		7
Total segmented product sales	19,760		25,903		17,081		442		636		611		637		757		458
Less: royalties	(2,443)		(3,918)		(1,694)		(1)		(1)		(1)		(57)		(71)		(21)
Segmented revenue	17,317		21,985		15,387		441		635		610		580		686		437
Segmented expenses
Production	3,617		3,754		2,963		342		437		383		141		114		91
Transportation, blending and feedstock (1)	5,808		6,394		4,772		7		6		7		1		1		1
Depletion, depreciation and amortization (3)	3,679		3,595		3,569		494		1,747		160		213		173		142
Asset retirement obligation accretion	234		171		101		46		33		21		8		7		6
Risk management activities (commodity derivatives)	24		18		29		—		—		—		—		—		—

Gain on acquisitions	—		—		(478)		—		—		—		—		—		—
Income from NWRP	—		—		—		—		—		—		—		—		—

Total segmented expenses	13,362		13,932		10,956		889		2,223		571		363		295		240
Segmented earnings (loss)	$	3,955	$	8,053	$	4,431	$	(448)	$	(1,588)	$	39	$	217	$	391	$	197
Non-segmented expenses
Administration
Share-based compensation
Interest and other financing expense
Risk management activities (other)
Foreign exchange (gain) loss
Gain from investments
Total non-segmented expenses
Earnings before taxes
Current income tax
Deferred income tax
Net earnings

(1)Includes blending and feedstock costs associated with the processing of third party bitumen and other purchased feedstock in the Oil Sands Mining and Upgrading segment.

(2)Includes the sale of diesel and other refined products and other income, including government grants and recoveries associated with the joint operations partners' share of the costs of lease contracts.

(3)Includes a recoverability charge in depletion, depreciation and amortization, related to the Ninian field in the North Sea at December 31, 2023 for $436 million (December 31, 2022 – $1,620 million) (note 7).


Oil Sands Mining and Upgrading						Midstream and Refining						Inter-segment elimination and Other						Total
2023		2022		2021		2023		2022		2021		2023		2022		2021		2023		2022		2021

$	18,661	$	20,804	$	14,033	$	76	$	80	$	78	$	176	$	53	$	(360)	$	37,300	$	43,009	$	29,256
—		—		—		—		—		—		142		237		196		2,575		5,236		2,716
5		149		73		926		906		681		10		5		3		960		1,285		882
18,666		20,953		14,106		1,002		986		759		328		295		(161)		40,835		49,530		32,854
(2,366)		(3,242)		(1,081)		—		—		—		—		—		—		(4,867)		(7,232)		(2,797)
16,300		17,711		13,025		1,002		986		759		328		295		(161)		35,968		42,298		30,057

3,989		4,076		3,414		332		271		234		59		60		67		8,480		8,712		7,152
2,563		2,652		1,505		664		691		550		259		229		(231)		9,302		9,973		6,604
2,011		1,822		1,838		16		16		15		—		—		—		6,413		7,353		5,724
78		70		57		—		—		—		—		—		—		366		281		185
—		—		—		—		—		—		—		—		—		24		18		29

—		—		—		—		—		—		—		—		—		—		—		(478)
—		—		—		—		—		(400)		—		—		—		—		—		(400)

8,641		8,620		6,814		1,012		978		399		318		289		(164)		24,585		26,337		18,816
$	7,659	$	9,091	$	6,211	$	(10)	$	8	$	360	$	10	$	6	$	3	$	11,383	$	15,961	$	11,241

																		452		415		366
																		491		804		514
																		636		549		711
																		(26)		(53)		7
																		(279)		738		(127)
																		(56)		(196)		(141)
																		1,218		2,257		1,330
																		10,165		13,704		9,911
																		1,879		2,906		1,848
																		53		(139)		399
																		$	8,233	$	10,937	$	7,664

CAPITAL EXPENDITURES (1)


	2023						2022
	Net expenditures		Non-cash and fair value changes (2)		Capitalized costs		Net expenditures		Non-cash and fair value changes (2)		Capitalized costs

Exploration and evaluation assets
Exploration and Production
North America	$	41	$	(36)	$	5	$	28	$	(59)	$	(31)
Offshore Africa	3		—		3		5		—		5
Oil Sands Mining and Upgrading	—		(25)		(25)		—		—		—
	44		(61)		(17)		33		(59)		(26)

Property, plant and equipment
Exploration and Production
North America	2,729		(321)		2,408		3,105		136		3,241
North Sea	33		525		558		126		177		303
Offshore Africa	169		18		187		119		(44)		75
	2,931		222		3,153		3,350		269		3,619
Oil Sands Mining and Upgrading	1,894		(251)		1,643		1,719		(843)		876
Midstream and Refining	10		—		10		9		(1)		8
Head Office	30		—		30		25		—		25
	4,865		(29)		4,836		5,103		(575)		4,528
	$	4,909	$	(90)	$	4,819	$	5,136	$	(634)	$	4,502

(1)This table provides a reconciliation of capitalized costs, reported in note 6 and note 7, to net expenditures reported in the investing activities section of the statements of cash flows. The reconciliation excludes the impact of foreign exchange adjustments.

(2)Derecognitions, asset retirement obligations, transfer of exploration and evaluation assets, and other fair value adjustments.

SEGMENTED ASSETS


	2023		2022
Exploration and Production
North America	$	30,058	$	31,135
North Sea	602		378
Offshore Africa	1,380		1,322
Other	32		54
Oil Sands Mining and Upgrading	42,865		42,102
Midstream and Refining	856		979
Head Office	162		172
	$	75,955	$	76,142